International Marketing Practices

Market Research If you are entering the forest products market or are looking to expand operations, you need to conduct research on current and future factors that affect the market you are interested in. Market research is the process of systematically gathering, recording, and analyzing data related to the marketing of goods and services. Initially, market research can be a daunting task, as much of the easily accessed market information comes from Wall Street and focuses primarily on markets controlled by larger corporations. However, simple market research methods for small to medium sized forest products companies are introduced in this chapter to help identify trends that can provide new opportunities for your business. Firms that can quickly identify and react to market trends tend to be leaders in their field, so focusing on your customers a nd competitors can provide a good foundation for market research. Other sources of information to quantify market trends can include subscription-based market reports, trade magazines, trade associations, academic institutions, and state extension specialists. Ultimately, the importance of well-conducted market research cannot be understated, as it enables your company to react to market changes faster, find new product ideas, service your customers better, and develop long-term selling opportunities. Talk to Customers An easy way to start doing market research is to talk to your current customers. They can provide information on industry-wide product line changes and insights into the future of the market. Often, consumer attitudes toward the future will have a direct effect on your business, and this information can provide you with some intuition into whether to expand or change the current markets that you service. Assessing Market Stability The actions of your customers can be a good benchmark to how stable a specific market is. Increased purchasing of raw materials and equipment can imply that the market has potential for growth. Employee layoffs and sudden changes in management can suggest that they may fear the future of the market and are trying to reduce overhead costs. Watch Competitors To some degree, watching the actions of your competitors can provide insight into how healthy a market is, so take the time to examine if your competitors are introducing or eliminating products. If advertisements from your competitors are

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